Higher gas prices and plowing over natural conservation land should be cause enough for Congress to revisit the ethanol mandate, but the fundamental problem with policy is simply a disconnect with economic basics.
In theory, the government mandate requiring that ethanol fuel be blended into America’s gasoline supply was intended to spur energy independence, reduce emissions and jumpstart rural economic development. Unfortunately, the RFS has failed to deliver on its environmental goals.
In order to prevent Americans from hitting the blend wall, the EPA proposed lowering the 2014 mandate. With this proposal came major political pressure from ethanol makers and now the EPA is considering backing down.
For the first time since the ethanol mandate was enacted, a government agency has confirmed what the refining industry has said for years…forcing ethanol into our fuel supply will increase gas prices.